Smartphone-enabled digital verification system (NFC Technology) has made our everyday tasks much easier and faster. They have produced a wide range of applications for the benefit of the whole world. One of these applications is NFC technology. In combination with AI-powered document authentication and biometric technology, smartphones packed with close-field communication technologies are increasingly used for online identity verification.
In addition, the customer onboarding process has shifted from fingerprint scanners to contactless technologies across various industries. This article will therefore explore technological developments to meet current requirements in the identity verification space. We will also discuss the work of the NFC ID verification and why it fits perfectly.
Check out: Reading, Analyse, and Validate Consumer Identity With Document Verification
The Importance of Identity Verification System
By 2025, the global market for ID authentication is projected to grow from 7.6 billion dollars in 2020 to 14.8 billion dollars. This upward trend raises the question of why it is so relevant. If a company does not validate the identity of its consumer properly, they risk allowing criminals into its system. In this unfortunate event, the same company is in gross violation of KYC/AML rules and results in fines and penalties.
In addition, companies are also threatened with charges and subsequent monetary losses.
The NFC check, however, makes the onboard experience for both end-users and businesses sufficiently secure. As a result, companies are guaranteed to adhere to their KYC/AML rules to concentrate on business growth.
How Were The Companies Previously onboarding The Customers?
Authentication of identity, whether manual or automated, depended heavily on traditional identification cards. In manual verification, users had to go to the verification site, and an organization official would check whether or not their identity information was legitimate. Even in the process of digital identification, criminals have found wise ways to digitally disappoint organizations. In this process, the OCR was heavily used to extract the information from the ID document. The accuracy of OCR data extraction was approximately 90%.
The above-mentioned digital authentication procedure was sufficient and appropriate because of the technology available. However, the introduction of chip-based identity cards – ICAO 9303-conforming – has led to an improvement and better improvement in the process. These e-ID cards have an NFC chip with data printed on paper.
Check out: How Biometric Identification is Forming Mobile Banking
What Makes NFC Technology the Right Fit?
Access and reliability are the two most important factors when using technology. The security, efficiency and reliable characteristics of the NFC Identity Verification Tools are due to the digital signing and encryption of the NFC chips data. In addition, there are estimated to be over 4.3 billion mobile users worldwide by 2023. According to reports, today’s NFC-enabled devices are about 2 billion. Most of these devices are smartphones.
This indicates that over 20+% of the world’s population currently uses NFC technology. Moreover, according to Statista, the value of the global NFC market is projected to reach $47.3 billion by 2024. The statistics mentioned above, therefore, easily eliminate any discomfort in accessing this technology. Therefore, NFC-based technologies are not surprisingly used for the digital verification of ID.
ID-based NFC Technology Authentication Process
In NFC-based authentication, an end-user only needs, and that is an NFC-installed smartphone. The progress of the NFC identification process is as follows: step by step:
1. First, the user submits a photo of an identification document that is NFC-enabled. The user can also take a real-time snapshot of the document with the camera of the smartphone.
2. The system then reviews the Machine Readable Zone document (MRZ). Before the data is collected, the validity of the MRZ portion is checked.
3. User touches the chip-based smartphone identification document for NFC chip scanning.
4. The information collected from the identity card is then compared with data collected by the NFC reader. The data obtained from the NFC chip is also displayed on the user screen.
Final Thoughts
More than 20% of the world’s population is using NFC-enabled smartphones. As a result, more ID authentication solutions include this technology.
In addition, the drop rate is reduced during the onboarding process, and the user experience is subsequently improved thanks to NFC ID authentication.
